How to search for a home

Traditional Methods

Most of us have fallen prey to the temptation to "check the market" once in a while by browsing through the property classified ads in the local newspaper. Usually, our intent is vague. . . we just want to see if we can determine an approximate value for our present home or we have that "grass is green and so am I" purpose of looking at homes we have no intention of buying, and probably couldn't afford anyway.

Intentional property searching through the classifieds is, on the other hand, a very different process. First, we get the highlight pen out and begin to place marks all over the place. We mark locations, properties, prices. . . just about everything. Then, often, we begin to get serious. We might call a few phone numbers, might even get into the car and "drive by" some of the advertised properties. We rarely stop and try to get a look at the inside of the home. "That would be too committal, and besides, I am just browsing."

This method of beginning our "purchase process" does not meet with any success very often. It is just too difficult to make a serious connection between potential buyer and serious seller. (By the way, this is just one of a whole bunch of reasons to work with a professional - they can do the "dirty" work of making the necessary arrangements).

Another method of beginning to locate available homes is the "Open Home" circuit. In this scenario, we get into the car on a sunny Sunday afternoon and head toward our "dream neighborhood." If we are really fastidious, we might even have scanned the "Open Houses" section of the Sunday Classified Ads, to see what was being held open that day. We drive around until we spot the ever-present "Home Open" signs that sometimes seem to be on every street corner. If we spot a house that looks interesting, we might even go in. Then, "IT" begins. . . we are immediately greeted by the Listing Agent. This is that point in the cycle where it almost feels like shopping for a new car, or entering an exclusive store - They ask us a question!! (gulp)

It might be an innocent "are you from the neighborhood?" or something more direct, such as "may I show you around this lovely home?" Whatever the question, the reaction is always the same - an instantaneous "No thanks. . . we are just looking." This has always amazed me. You know that you are interested. The selling agent knows that you are interested. Yet it always comes out, like any other knee-jerk reaction. "No thanks. . . I am just looking."

In truth, this reaction and the accompanying feeling in the pit of your stomach is, in my opinion, the very thing that drove you to wanting to find a home on your own in the first place. It isn't any true dollar savings. It is the feeling that you just don't want to be controlled or "sold" on anything. You simply want to do your looking, thinking and acting in your own time and on your own terms. Logical, no? I have found it to be true more often than not.

This reaction also has an opposite effect. It can be the beginning of a serious game of "get their phone number" between you and the agent. I have rarely seen this method of locating a property lead to a successful close of escrow.

New Methods

The Exclusive Buyer's Agent

In the past few years, a new form of real estate practice has sprung up, inspired by a new awareness of the true meaning of "agency" and just who represents whom in a typical transaction. The complex issue of agency relationships is so large that it could take up its own tutorial. There are several differences between the agency laws from one state to another. With these in mind, I will not attempt to teach you agency law. The purpose of this lesson is to give you enough of an understanding that you are able to grasp the concepts of Buyer Representation.

It is important that you understand that an Exclusive Buyer Agency means that the broker that you have come to an agreement with for representation is now "employed" by you to represent you in certain portions of the transaction process. Usually, you will sign an agreement with such an agent that states that you agree to have them locate a home that you want to buy, during a certain timeframe. You typically further agree that you will pay their fee for this - often expressed as a percentage of the sales price, on the close of escrow. Quite often this can be further extended into the actual purchase agreement by stipulating that the seller will reimburse you a like sum - effectively having the seller pay the Buyer's Broker fee. Of course, this is merely a reimbursement, since you don't want the seller to become the employer of your agent.

By now you might be wondering what the difference is between this and the "old" style - where the seller pays the full commission anyway. The difference lies in a phrase known as "fiduciary duty." This is, simply defined, a duty of trust and confidence. Of course, all licensed agents have a duty of honest and forthright dealings with all principals - buyer or seller in this case. A direct fiduciary duty carries the further responsibility of confidence, that is, the obligation to disclose all known material facts that might have a bearing on the principal's decision to enter into an agreement. When you enter into an agreement that makes the Buyer's Broker your agent, that broker now has a direct fiduciary duty to you.

A result of this new type of relationship is that you can now allow someone to perform the initial searches, arrange the showings, etc., secure in the knowledge that that person has (by law) your interests in the forefront of his/her thoughts.

Web-based Property Searching

You are obviously either going to be very receptive to this method, or you are already doing it, as evidenced by your being here in the first place. I will not bore you with the details of search engines, linking, index pages, etc., since I am fairly certain that you already know this. I will, however, tell you that locating and viewing property based on a web search is nowhere near as easy as it might seem. There are many web sites especially non-real estate sites that advertise homes for sale. You should keep a few things in mind, however, about this and nearly every other web real estate site.

• They are listed by real estate professionals who represent the seller
   
• Seller phone numbers are usually not on the web page, meaning that you will need to call the listing agent for an appointment
   
• This medium is currently little more than an "electronic newspaper." You will probably have about as much success in finding and closing on a home here as you would in your Sunday Classifieds.

The bottom line

Call or email the agent directly. Let him do the work, establish a Buyer's Agency, do it the right way if you are sincerely interested in finding a new home and spend the extra free time enjoying your family.